Yahoo Finance What Should You Know About The Future Of Kinder Morgan, Inc.’s (NYSE:KMI)?
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As Kinder Morgan, Inc. (NYSE:KMI) announced its earnings release on 31 December 2018, analyst consensus outlook appear vastly optimistic, with profits predicted to ramp up by an impressive 51% next year, against the past 5-year average growth rate of -27%. By 2020, we can expect Kinder Morgan’s bottom line to reach US$2.2b, a jump from the current trailing-twelve-month of US$1.5b. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
View our latest analysis for Kinder Morgan
What can we expect from Kinder Morgan in the longer term?
Over the next three years, it seems the consensus view of the 9 analysts covering KMI is skewed towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To reduce the year-on-year volatility of analyst earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
From the current net income level of US$1.5b and the final forecast of US$2.7b by 2022, the annual rate of growth for KMI’s earnings is 16%. EPS reaches $1.24 in the final year of forecast compared to the current $0.66 EPS today. With a current profit margin of 10%, this movement will result in a margin of 17% by 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Kinder Morgan, I’ve compiled three fundamental aspects you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is Kinder Morgan worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Kinder Morgan is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Kinder Morgan? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. On rare occasion, data errors may occur. Thank you for reading.
